15 Appendices

Questionnaire
A STUDY ON THE ROLE OF BANKS IN THE FINANCIAL INCLUSION IN
TIRUNELVELI
i. General Information:
Name of the Respondent: …………………………………….
1. Block: 1) Tirunelveli 2) Palayamkottai 3)Tenkasi 4) Nanguneri

2. Gender: 1) Male 2)Female
3. Age Group: 1) Less than 30 2)30–50 3) 50 and above
4. Marital Status: 1) Married 2)Unmarried 3) Widowed
5. Religion: 1) Hindu 2)Muslim 3)Christian 4) Others
6. Caste: 1) General 2) OBC 3) SC/ST
7. Education: 1) Primary 2)Secondary 3)Higher Secondary 4) Degree
5) Others
8. Occupation: 1)Agriculture 2) Business 3)Govt. / Private Employee
4) Daily Worker 5) Self Employed 6)House wife
9. Area: 1) Rural 2)Urban
10. Category: 1) Public 2)Private
ii. Financial Awareness:
11. Type of Deposits: 1) Saving Deposits 2) Fixed Deposits

3) Recurring Deposits 4) Others
12. Type of Loans: 1) Agriculture Loan 2) Gold Loan 3)Personal Loan
4) Housing Loan 5) Vehicle Loan 6)Education Loan
7) Business Loan 8) Others

13. Financial Services
Very Low Neutral High Very

Low High
1 2 3 4 5
13.1 ATM / Debit Card
13.2 \Credit Card
13.3 Cheque Book
13.4 Money Transfer
13.5 Locker Facility
13.6 Mutual Fund
13.7 Mobile Banking
13.8 Internet Banking
13.9 Money Advice & Credit

Counseling
14. Type of Insurance: 1) Life Insurance 2) Medical Insurance 3) Health Insurance
4) Accident Insurance 5)Vehicle Insurance 6) Property Insurance

7) Cattle Insurance 8)Crop Insurance 9) Others

Low High
1 2 3 4 5
Zero Balance Account

iii. Financial Necessity
15. Indicate your level of requirement for the following using the scale given below:

Low High
1 2 3 4 5
15.1 Various Deposit Accounts

(SB / FB)
15.2 Various Loans
15.3 Various Other Financial

Services
15.4 Various Insurance Products
iv. Financial Availability:
16. Indicate the level of availability of the following from the District banks of
your area, using the scale give below:

Low 2 3 4 High
1 5
16.1 Various Deposit Accounts
(SB / FB)
16.2 Various Loans
16.3 Various Other Financial

Services
16.4 Various Insurance Products
v. Financial Access
17. Indicate, how much you agree with the following statements relating
to banking services, using the scale given below:
**SDA – Strongly Disagree DA – Disagree N – Neutral A – Agree

SA – Strongly Agree
SDA DA N A SA
1 2 3 4 5
17.1) For the Following reasons, I do not open account with banks
17.1.1 Opening an account with a bank takes lot

of time.
17.1.2 Bank employees do not help in opening

an account.
17.1.3 Banks are not for the poor
17.1.4 I am not able to keep minimum balance in

the account.
17.1.5 Filling of forms for opening account is tedious
17.1.6 I do not have savings habit
17.2) For the following reasons, I do not deposit money with the banks
17.2.1 I am not able to save due to high cost of

living.
17.2.2 Bank employees are not friendly and co-

operative
17.2.3 I prefer to deposit money with private bankers
17.3) Often. I feel the following difficulties, in connection with taking loans
from banks
17.3.1 There is much delay in sanctioning and

getting loan.
17.3.2 Banks charge heavy interest on loans.
17.3.3 Attitude of the bank staff is indifferent.

17.3.4 Amount of repayment per installment is high.
17.3.5 Number of installments is not convenient.
17.3.6 Period of loan repayment is shorter.
17.3.7 There is restriction in the use of loan amount.
17.3.8 In case of default in payment, further loan is

refused.
SDA DA N A SA
1 2 3 4 5
17.4) For the Following reasons, I do not open account with banks
17.4.1 I need insurance against loss of life and

property.
17.4.2 I am not aware that, banks facilitate insurance
policies.
17.4.3 I know the insurance agents who sell policies.
17.4.4 Insurance agents compel people to buy

insurance policies.
17.4.5 I am not aware of credit cards and not using it.
17.4.6 I don’t know how to operate ATM, so I don’t

use it.
17.4.7 I am not able to have the minimum balance in
my account, so I don’t have the cheque book.
17.4.8 I don’t use cheque book because I have no
deposits.
17.4.9 I don’t transfer money through bank because
it is expensive.
17.4.10 I am not aware and don’t have mutual fund.
17.4.11 I use mobile phone but don’t use mobile

banking
17.4.12 Mob banking / Internet Banking is popular in
cities and towns.
vi.
vii. Access to Information:
18. How much information about the following is available to you?

Low High
1 2 3 4 5
18.1 Day-to-day cash management.
18.2 Profitable investment avenues.
18.3 Effective use of credit
18.4 Modern financial services
18.5 Starting Micro / Small

Enterprises
18.6 Interest rates in force.
18.7 Zero balance account.
18.8 Exploitation by money lenders.
viii. Attitude of People:
19.

Low 2 3 4 High
1 5
19.1) Indicate your level of interest in the following financial activities.
19.1.1 Opening bank account.
19.1.2 Saving and depositing money

with banks.
19.1.3 Availing loans at reasonable
interest.
19.1.4 Taking insurance policies.
19.1.5 Seeking advice in money

management.
19.1.6 Starting micro enterprises.
19.2) Indicate your level of initiative in the following financial services.
19.2.1 Opening bank account.
19.2.2 Saving small amount and

depositing with banks.
19.2.3 Availing small loans.
19.2.4 Taking insurance policies.
19.2.5 Getting advice in money

management.
19.2.6 Starting small business.
ix. Influence of Informal Finance:
20. How much you agree with the following statements relating to money
lenders and private banks, using the given scale.

SDA DA N A SA
1 2 3 4 5
20.1 They give more interest on deposits than

commercial banks.
20.2 They charge more interest on loans than
commercial banks.
20.3 Loans are easily available from them.
20.4 They give loans for any purpose.
20.5 Involves less time and formalities than commercial

banks.
20.6 Loans are available even at the door steps.
20.7 More friendly than the commercial banks.
x. Inclusion through Linkage Banking:
21. How Long you have been the member of SHG / NHG?
1) Less than 3 Years 2)3 – 5 years 3) 5 – 7 years 4) 7 – 10 years5)
More than 10 years
22. How did you come to know about SHG / NHG?
1) Through Neighbors 2)Panchayat Municipal staff 3) Bank staff
4) SHG / NHG Members
23. Rank the following factors that motivated you to join SHG / NHG in the order
of preference, assigning 1 for the most preferred choice and 8 for the least
preferred choice.
a. To obtain credit
b. To find fund for unexpected contingencies.

c. As a source to meet domestic expenses.
d. Access to bank credit, which is otherwise not possible.

e. Empowerment.
f. For promoting savings.
g. For employment opportunities.

h. To mingle with others.
24. Indicate how much you are using the following financial products / services.

Low High
1 2 3 4 5
24.1 Bank account.
24.2 Deposits.
24.3 Loans.
24.4 Insurance.
24.5 Money transfer facility.
24.6 ATM.
24.7 Credit Card.
24.8 Mobile / Internet banking

Money Advice / Credit
24.9
Counseling
25. How many times you took loan from SHG / NHG?
1) Only Once 2) Two times 3) Three times 4) More than 3 times 5) Never
26. How do you use the loan amount taken from SHG / NHG?
Rank the following in the order of preference assigning 1 for the most
preferred choice and 10 for the least preferred.
a. Day – to – day consumption
b. Starting own business
c. Debt redemption
d. Consumable durables
e. Education of children.
f. Purchase of vehicle.
g. Medical expenses
h. Purchase of assets (Cattle, tailoring machine, gold etc)
i. Others (Entertainment, Charity etc)
27. What is your opinion about the interest charged by the SHG / NHGs?
1) Very High 2) High 3)Moderate 4) Low 5) Very Low

28. How do you pay the loan installments? 1)Weekly 2) Monthly
29. Reason for regular payment?
1) Pressure from the group 2) Fear of getting no further loans
3) Fear of legal action 4) Self Esteem 5) others

30. Reason for irregular payment?
1)Inadequate Income 2) High amount of installments
3) other emergency expenses occurred 4) willful default 5) others
31. Indicate the level of difficulty you have experienced with regard to the following.

Low High
1 2 3 4 5
31.1 Opening of accounts
31.2 Making deposits
31.3 Taking loan
31.4 Taking Insurance Policies
31.5 Transfer of money
31.6 Financial advice and credit

counseling
31.7 Assistance for promoting the
group.
32. Indicate your satisfaction level on the following services given by the
Tirunelveli District banks in your area?

Low 2 3 4 High
1 5
32.1 Opening Bank account
32.2 Taking Loans
32.3 Micro-insurance
32.4 Money Transfer facilities
32.5 ATM / Debit cards
32.6 Credit cards
32.7 Mobile banking / internet
banking
32.8 Money advice / credit
counseling
33. How much you are benefitted by the Linkage Banking Programme of DCBS
in your area, using the scale given below:

Low High
1 2 3 4 5
33.1) Economic Benefits
33.1.1 Increase in Access to Finance
33.1.2 Increase in Savings habit
33.1.3 Increase in Assets
33.1.4 Ability to take decisions on

use of money
33.2) Personal Benefits
33.2.1 Improvement in Exposure
33.2.2 Improvement in Self Esteem
33.2.3 Improvement in Skills and

abilities
33.2.4 Improvement in Confidence
and initiative
33.2.5 Improvement in
Communicative abilities
33.3) Familial Benefits
33.3.1 Improvement in family

relations
33.3.2 Improvement in Children
education
33.3.3 Improvement in Standard of
living
33.3.4 Improvement in Medical Care
33.4) Social Benefits
33.4.1 Improvement in Participation

in social activities
33.4.2
Improvement in Collective
bargaining
Improvement in Social
33.4.3
Concern
33.5) Political Benefits
Improvement in Participation
33.5.1
Improvement in position of
33.5.2 power
INTERVIEW SCHEDULE
A STUDY ON THE ROLE OF DISTRICT BANKS IN THE FINANCIAL
INCLUSION IN TIRUNELVELI DISTRICT
i. General Information:
Block : 1) Tirunelveli 2)Palayamkottai 3) Tenkasi 4) Nanguneri
1. Area: 1)Rural 2)Urban
2. Category: 1)Public 2)Private
3. How important are the following for an individual opening an account

with your bank?
Indicate your response using the scale

Low High
1 2 3 4 5
3.1 To receive financial assistance

form Govt.
3.2 For depositing money
3.3 For taking loans
3.4 For receiving money from others
3.5 For other purposes (ATM / Credit

Card etc)
4. How important are the following for an individual asking for a loan from
your bank?
Indicate your response using the scale.
Low High
1 2 3 4 5
4.1 Interest on loan
4.2 Security demanded by the bank
4.3 Amount of loan given
4.4 Procedural hassles
4.5 Timely availability of loan
4.6 Local availability of loan
4.7 Repayment schedule
4.8 Familiarity with the lender
4.9 Trust in the lender
4.10 Attitude of the bank staff
5. Among various loans offered by your bank, which one the customers prefer most?
Rank the following in the order of preference, assigning 1 for the most
preferred choice and 7 for the least preferred.
a. Business loan
b. Vehicle loan
c. Education loan
d. Housing loan
e. Personal loan
f. Gold loan
g. Agricultural loan
6. How the following factors influence a customer, while transacting with your
bank? Indicate your response using the scale.

Low High
1 2 3 4 5
6.1 Approach of bank staff
6.2 Language of bank staff
6.3 Distance to bank branch
6.4 Identification formalities
6.5 Documentation formalities
6.6 Processing time
6.7 Attractive premises
6.8 Facilities at the counter
6.9 Cost of transaction
ii. Financial Exclusion / Inclusion:
7. How significant are the following factors which prevent people from opening
account with your bank? Use the scale given below

Low High
1 2 3 4 5
7.1 She / He has no money / little money to

put in the account
7.2 No bank in his / her are (need to travel a
lot to reach the bank)
7.3 Fear that bank may take too many
charges on account
7.4 Proposal for the account was refused by
the bank
7.5 Opening an account is a lengthy process
7.6 No help from bank for opening an
account
7.7 Not aware of the services provided by
the banks
7.8 Easy availability of money form money
lenders and private banks
7.9 Problem of minimum balance
8. Indicate the reasons for refusal of account with your bank, by ranking
the following.
(Assign 1 for the most preferred choice and 5 for the least preferred)
a. No identify Documents
b. Previous bad credit history
c. No job, unemployed
d. Huge debts
e. Not lived here long enough (no credit history)
9. How significant are the following factors to refuse a loan from your
bank? Indicate your response using the scale.

Low High
1 2 3 4 5
9.1 Insufficient security to offer

9.2 Lack of regular income
9.3 Had already availed a loan
9.4 Bank did not agree with the purpose of

the loan
9.5 Insufficient documents
9.6 Bad credit history

iii. Micro-Credit
10. Rank the following problems coupled with delivery of micro credit?
a. Unfeasible proposals from groups
b. Poor entrepreneurial skills of the beneficiaries
c. Willful default by the beneficiaries
d. Indifferent attitude of the beneficiaries
e. Dual control of the cooperatives
f. Malpractices by the groups.
11. Rank the following issues associated with recovery of micro credit?
a. Lack of Government’s support in arbitration
b. Absconding of borrowers
c. Lack of adequate bank staff
d. Lack of financial discipline of beneficiaries
e. Lack of follow-up
f. Political interference
12. Priorities the benefits of micro credit by assigning 1 for the most preferred and 8
for the least preferred.
a. Helps in alleviation of poverty
b. Uplift the neglected sector
c. Inclusion of the neglected sector
d. Providing livelihood to the downtrodden
e. More benefit to women
f. Generating more employment

g. Increased rural development
h. Waste of public money
iv. Perception on Financial Inclusion:
13. How significant are the following factors in accelerating financial

inclusion? Indicate your response using the scale.

Low High
1 2 3 4 5
13.1 Financial awareness and financial

literacy of the people
13.2 Availability of financial products and
services
13.3 Level of access of people to financial
products and services
13.4 Attitude of the people towards the
banking products
13.5 Affordability of products and services
13.6 Control over money lenders and

private banks
13.7 Attitude of the bank staff towards the
customers.
14. Indicate, how much you agree with the following statements relating to
financial inclusion efforts of your bank, using the scale given below.

SDA DA N A SA
1 2 3 4 5
14.1 DCBs help people to open accounts and

encourage savings
14.2 Poor as well as rich people save with private
banks and money lenders
14.3 Poor people need consumption loans more
14.4 Poor people are afraid of starting own business
14.5 People may use the loan for some other purposes
14.6 People makes willful default
14.7 Political leaders may advice not to repay the loan
14.8 Micro credit is not profitable for the banks
14.9 Poor may not have sufficient collateral
14.10 Poor people are not able to produce the

documents
14.11 Due to lack of awareness poor people go to
money lenders
14.12 DCBs have adequate branches in Tirunelveli
14.13 Money lenders are familiar with the poor people
14.14 Poor people prefer to take loans from money

lenders
14.15 Money lenders charge high interest on loans
14.16 DCBs provide micro loans
14.17 Micro finance helps to develop banking habits

14.18 DCBs extend micro finance to SHGs in a big way
14.19 DCBs provide group insurance
14.20 Poor people use mobile phones but don’t use

mobile banking
14.21 DCBs make the poor aware of financial services
14.22 Banks take the FI initiatives due to the pressure

from RBI
14.23 Large portion of no frill accounts remain dormant
15. To what extent, the Financial Inclusion efforts of your bank have resulted in
the empowerment of the following categories of people?
Indicate your response using the scale.

Low High
1 2 3 4 5
15.1 Women
15.2 Youth
15.3 Persons with disabilities
15.4 Older persons
15.5 Economically backward people

16. How much the following issues challenge the Financial Inclusion efforts of
your bank? Indicate your response, using the scale given below.

Low High
1 2 3 4 5
16.1 Dual control of the co-operatives
16.2 Lack of support from Government

/ RBI
16.3 Reduced freedom in decision
making
16.4 Staff shortage
16.5 Lack of infrastructure / facilities at

branches
16.6 Lack of computerization /
automation
16.7 Lack of awareness among people
about services
16.8 Lack of interest of people towards
co-operatives
16.9 Overdependence of people on
money lenders and private banks
16.10 Interference by political parties
XAVERIAN JOURNAL OF MARKETING (XJM)
VOLUME: 7 NUMBER: 7 JANUARY – JUNE 2015
FITTING INTO THE STRATEGIC PRACTICES OF IT INDUSTRY

- A CASE STUDY
Divya D S Rajan, Dr. T. Vanniarajan
ROLE OF HANDLOOM INDUSTRY IN KANYAKUMARI

DISTRICT Dr. I. Samuel Sundar Singh, Miss. Abinaya P.
A STUDY ON PROBLEMS OF COTTAGE INDUSTRIES IN TIRUNELVELI

DISTRICT Dr. T. Velpandi, Mrs. V. Indumathi
LABOUR PROBLEMS IN SAFETY MATCH INDUSTRY IN RAJAPALAYAM IN

VIRUDHUNAGAR DISTRICT
Dr. M. Arockia G. Ruban
A STUDY ON COTTAGE VS CORPORATE INDUSTRY IN INDIA (WITH SPECIAL

REFERENCE TO ITC LTD)
R. Thanga Selvi
A STUDY ON BORROWERS SATISFACTION TOWARDS THE SERVICES OF

HOUSING LOAN PROVIDERS
Dr. Rajeswari, Dr. S. M.Sri Langa Meenakshi
A STUDY ON CUSTOMER PERCEPTION ON TMB BANK WITH

REFERENCE TO SATHANKULAM
S. Merlin Vista, Dr. C. Eugine Franco
A STUDY ON JOB SATISFACTION OF MATRICULATION SCHOOL

TEACHERS IN TIRUNELVELI DISTRICT.
DR. S. Ramachandran, J.Vijay Stanly
ROLE AND FUNCTIONING OF BANKS IN TIRUNELVELI DISTRICT TOWARDS

FUND MOBILISATION, BRANCH EXPANSION AND FINANCIAL INCLUSION
Dr. M. Julius Ceasar, Mrs. A. Saleth Mary Vetriselvi

ROLE AND FUNCTIONING OF BANKS IN TIRUNELVELI DISTRICT TOWARDS FUND
MOBILISATION, BRANCH EXPANSION AND FINANCIAL INCLUSION
*
Dr. M. Julius Ceasar
**
INTRODUCTION
The present scenario of Indian economy is growing, and the rate of growth is more than many
other developed countries. Banks play a vital role in the economic development of our country.
According to the RBI guidelines, banks in India should implement financial inclusion policy to enter
vulnerable groups, by providing adequate financial services and by mobilizing their small savings. Thus
the present paper aims to throw lights on the role of banks in the financial inclusion.
Financial access/inclusion is considered crucial for individuals/households to manage their

incomes, to exploit opportunities and thereby, improving their economic positions. Given the fact
that most of the banking parameters show dismal condition of Tirunelveli District, it is important to
examine the extent and nature of financial inclusion/exclusion in the Tirunelveli district. However,
as in the recent times the focus of policy makers is to use the intermediaries for promoting
financial inclusion, the question whether various new forms of financial service providers or
institutions have helped in promoting/enhancing financial inclusion also becomes pertinent. The
present study seeks to address to these important issues. While a few studies on some of the aspects
of the financial inclusion have been done recently, no concrete study on the multiple dimensions of
financial inclusion/exclusion in the district in general and in the rural areas in particular is
available. The proposed study is induced by the necessity to fill-in this gap to some extent. Based
on the analysis of rural household survey, in combination with an evaluation of the role of financial
institutions, the study examines different forms of financial service providers, both formal and
informal. Moreover, the proposed study has important policy implications as well. It has made
some recommendations for policy advisors and financial service providers on how to scale-up
access to finance for Tirunelveli district rural poor in a commercially sustainable manner.
*
Dean of Arts & Assistant Professor, PG & Research Commerce, St. Xavier’s College (Autonomous), Palayamkottai.
*
Assistant Professor, Department of Commerce, St. Xavier’s College (Autonomous), Palayamkottai.
Xaverian Journal of Marketing, January-June 2015 Volume: 7 Number: 7 ISSN 2278- 6562
57
MEANINGS
(i)Financial inclusion
Financial Inclusion is the process of ensuring access to appropriate financial products and
services needed by vulnerable groups such as weaker sections and low income groups at an
affordable cost in a fair and transparent manner by mainstream Institutional players.
(ii)Financial exclusion
Financial exclusion is the process by which a certain section of the population or a certain
group of individuals is denied the access to basic financial services
REVIEW OF LITERATURE
1
Navin Bhatia and Arnav Chatterjee (2010) “Financial Inclusion in the Slums of Mumbai”,
although financial inclusion – the delivery of banking services at an affordable cost to the vast
sections of disadvantaged and low-income groups – has become the buzzword in financial
circles, it has still a long way to go. The results of a study conducted in selected slums of
Mumbai to gauge the nature of financial inclusion bust certain myths about banking practices
among urban slum-dwellers.
2
Olga Morawczynski, David Hutchful, Nimmy Rangaswamy and Edward Cutrell , (2010)
made a study entitled, “The Bank Account is not enough: examining strategies for financial inclusion
in India”, The Indian government has undertaken an ambitious strategy for financial inclusion (FI) as
part of its development agenda. With the aid of technology-enabled branchless banking initiatives,
this drive has been successful in regards to extending access—nearly 60% of the Indian population is
banked. However, empirical evidence suggests that the majority of bank accounts are not being
utilized, especially not by the poor who are the target of FI. This paper examines the reasons for such
underutilization and also recommends ways to improve the FI drive. The paper contributes to the
strand of ICTD literature that focuses on FI in two ways. First, it makes clear that the measures of FI
success should not be focused on access alone. The real impact comes from aPpropriate usage of
these accounts. Second, it argues that financial education (FE) should be integrated into the FI drive.
This would help the poor to more effectively exploit their links to formal financial services and
decrease their reliance on costly informal alternatives.
1 Navin Bhatia, Arnav Chatterjee “Financial Inclusion in the Slums of Mumbai”, Economic & Political Weekly, Vol.XIV, No.42,
2010, Pp.23-26.
2 Olga Morawczynski, David Hutchful, Nimmy Rangaswamy, and Edward Cutrell, “The Bank Account is not enough: examining
strategies for financial inclusion in India”, in Proc. of the 4th IEEE/ACM Conference on Information and
Communication Technologies and International Development (ICTD) 2010, London, UK, IEEE
58
3
Arun, T.J and Ashok, J (2010) in the study on, “Financial Inclusion-Indian Experience”,
explains that banks need to redesign their business strategies to incorporate specific plans to
promote financial inclusion of low income group treating it both a business oPportunity as well
as corporate social responsibility.
Hanning and Jansen (2010) found that reliable and comprehensive data capturing various
dimensions of financial inclusion was a critical condition for evidence-based Policymaking. This
presented several challenges ranging from the basics of what financial inclusion was and what it
entailed especially because it was a concept that varied with level of countries‘economic
development and geographical reasons. The definition of financial inclusion and its components
was important for setting a clear direction for policymaking by translating the concept of
financial inclusion into operational terms but also allowing tracking progress and measuring
outcomes of policy reforms. This study attempted to articulate the definition of financial
inclusion and its components in the context of Kenya.
4
Sarma and Pais (2010) reported that literacy was positively and significantly associated with
financial inclusion. Several empirical studies conducted in West Bengal have shown that SHGs
created a smooth path of financial inclusion for the rural poor. The number of total deposit
accounts had increased to 734.8 million and credit account to 118.6 million in 2010 for all banks
and the number of no frill accounts in all public and private banks had increased to 33 million in
2009 from seven million in 2006 (RBI, 2010). Besides, KCC scheme had brought 95 million
farmers under the purview of the banking system in 2010 as against 84.6 million farmers in 2009
and the SHG bank linkage programme had helped seven million rural people to have access to
formal savings and formal credit (Government of India, 2011).
OBJECTIVE OF THE STUDY
i. To study the growth of deposits and advances

ii. To study the growth of branches in rural, semi urban and urban areas
iii. To study the financial assistance received by banks and to offer suggestions.
METHODOLOGY
The researcher collected secondary data from lead bank office in Tirunelveli. With the help
of secondary data the researcher arrived at some suggestions.
3Arun.T.J and Ashok.J, “Financial Inclusion-Indian Experience”, Indian Economic Panorama, 2010, Pp.46-49.
4 Sarma, M. and Pais, J. (2010). Financial inclusion and development. Journal of International Development, n/a. doi:
10.1002/jid.1698.
59
BANKING SERVICES IN TIRUNELVELI DISTRICT
GROWTH OF DEPOSITS
Mobilization of resources is a key challenge facing the banking sector. The details of
growth of deposits in Tirunelveli district are presented in Table.
Table 2
Growth of Deposits (in Rupees)
BANKS 2008-09 2009-10 2010-11 2011-12 2012-13 CGR

State Bank of India 6,874,249 8114500 9155100 11426300 12940200 17.44
State Bank of 1317342 1699367 1982698 2238721 2135679 13.21
Travancore
Allahabad Bank 15704 38310 50285 64660 25.34

Andhra Bank 52470 67479 101618 92410 100907 17.62
Bank of Baroda 422705 559833 1374207 501912 13.21
Bank of India 198866 555792 244561 361720 392554 9.75
Canara Bank 7722739 9132206 9934222 9841520 11005024 8.14
Central Bank of India 1056451 1110944 1437645 1412673 8.71
Corporation Bank 569463 699162 141169 940139 913022 29.38
IDBI 34553 34553 -
Indian Bank 4270463 5259000 6332057 7444090 8730872 19.97
Indian Overseas Bank 9557200 12047800 13336472 14796003 17028300 98.97
Punjab National Bank 483569 627321 678491 846601 846601 15.21
Syndicate Bank 208415 268415 332673 349192 372692 15.32
Union Bank of India 485503 620616 798797 1298561 1083018 26.41
UCO Bank 259525 278678 297627 376787 393654 12.02
Vijaya Bank 67194 74375 73531 78427 102085 98.88
SOURCE: LEAD BANK IN TIRUNELVELI (2013) (INDIAN OVERSEAS BANK)
Table above table shows that the growth of deposits in Tirunelveli district. The table reveals that
the deposits of the Indian Overseas Bank has increased from Rs. 9557200 in 2008-09 to Rs. 11005024
in 2012-13, the deposits of State Bank of India has also increased from Rs.6874249 in 2008-09 to Rs.
12940200 in 2012-13. The deposits of Canara Bank have increased from Rs.7722739
60
in 2008-09 to Rs.11005024 in 2012-13 and the deposits of Indian bank have increased from
Rs.4270463 in 2008-09 to Rs.8730872 in 2012-13. It is further clear from table that the growths of
deposits of Indian Overseas bank, State Bank of India, Canara Bank and Indian bank in Tirunelveli
district have recorded a compound growth rates of 98.97, 17.44, 8.14 and 19.97 per cent respectively.
GROWTH OF ADVANCES
Credit is a crucial input for economic development of any individuals. Every individual
need credit for a variety of reasons. They need credit to meet requirements for working capital,
long term investment in agriculture and other income bearing activities apart from credit needs for
food, housing, health, education and other social obligations. The details of growth of advances in
Tirunelveli district are presented in Table.
Table 2
Growth of Advances (in Rupees)
BANKS 2008-09 2009-10 2010-11 2011-12 2012-13 CGR
State Bank of India 7231353 7769400 7819400 7990600 9220500 5.29
State Bank of 1556112 1806977 2170994 2247507 2724935 14.29
Travancore
Allahabad Bank 1292 5714 36660 86234 106.11

Andhra Bank 80217 76937 89537 94806 85929 3.51
Bank of Baroda 300332 371437 304685 249307 -7.28
Bank of India 266405 309496 281185 379011 485408 15.05
Canara Bank 3634821 4120844 5316458 5919927 6786587 17.48
Central Bank of India 489540 674391 879151 1099467 14.36
Corporation Bank 151875 170375 12051 378626 594784 42.29
IDBI 33110 33110 -
Indian Bank 3286086 3931900 5097492 6349582 7134197 22.48
Indian Overseas Bank 4088400 4906200 6488260 8492429 10665100 27.96
Punjab National Bank 453226 623835 648892 1040749 1040749 24.27
Syndicate Bank 184459 219299 248941 312572 355369 18.15
Union Bank of India 400588 645463 877980 1081956 1068847 27.17
UCO Bank 253267 262418 281936 311251 409485 11.96
Vijaya Bank 98032 102598 107020 104709 127799 5.43
Source: Lead bank in Tirunelveli (2013) (Indian Overseas Bank)
61
Table 6.2 shows that the growth of advances in Tirunelveli district. The table reveals that the
advances of the Indian Overseas Bank has increased from Rs.4088400 in 2008-09 to Rs. 10665100 in
2012-13, the advances of State Bank of India has also increased from Rs. 7231353 in 2008-09 to Rs.
9220500 in 2012-13. The advance of Canara Bank has increased from Rs. 3634821 in 2008-09 to
Rs.11005024 in 2012-13 and the advance of Indian bank has increased from Rs. 3286086 in 2008-09 to
Rs. 7134197 in 2012-13. It is further clear from table that the growth of advances of Indian Overseas
bank, State Bank of India, Canara Bank and Indian bank in Tirunelveli district has recorded compound
growth rates of 27.96, 5.29, 17.48 and 22.48 per cent respectively.
GROWTH OF BRANCHES IN RURAL AREA
Opening of bank branches at all unbanked rural areas is a pre-requisite for bringing all
households into the banking fold. The details of growth of branches in rural areas in Tirunelveli
District are shown in Table.
Table 3
Growth of Branches in Rural Area
BANKS 2008-09 2009-10 2010-11 2011-12 2012-13
State Bank of India 9 9 9 9 7
State Bank of Travancore 0 0 0 1 1
Allahabad Bank 0 0 0 0 0
Andhra Bank 0 0 0 0 0
Bank of Baroda 0 0 0 0 0
Bank of India 1 1 1 1 1
Canara Bank 7 7 8 10 10
Central Bank of India 2 2 2 2 2
Corporation Bank 0 0 0 0 1
IDBI 0 0 0 0 0
Indian Bank 2 2 2 2 3
Indian Overseas Bank 21 21 22 27 27
Punjab National Bank 1 1 1 1 1
Syndicate Bank 0 0 0 0 0
Union Bank of India 0 0 0 0 0
UCO Bank 1 1 1 1 1
Vijaya Bank 0 0 0 0 0
Total 44 44 46 54 54
SOURCE: LEAD BANK IN TIRUNELVELI (2013) (INDIAN OVERSEAS BANK)
Table 6.3 shows the growth of branches in rural areas in Tirunelveli district. The table reveals
that the branches opened by Indian Overseas bank has increased from 21 in 2008-09 to 27 branches in
2012-13, the branches opened by Canara bank has increased from 7 to 10 branches, the branches
62
opened by Indian bank has increased from 2 to 3 branches and the State Bank of India has declined
two branches in 2012-13.
GROWTH OF BRANCHES IN SEMI-URBAN AREA
The details of growth of branches in semi-urban areas in Tirunelveli District are shown in
Table.
Table 4
Growth of branches in semi-urban area
BANKS 2008-09 2009-10 2010-11 2011-12 2012-13
Canara Bank 11 11 12 12 21
IDBI 0 0 0 0 0
UCO Bank 0 0 0 0 0
Total 61 61 64 66 82
Table 6.4 shows the growth of branches in semi-urban areas in Tirunelveli district. The table
reveals that the branches opened by Indian Overseas bank has increased from 20 in 2008-09 to 23
branches in 2012-13, the branches opened by Canara bank has increased from 11 to 21 branches, the
63
branches opened by Indian bank has increased from 9 to 10 branches and the branches opened by
the State Bank of India has increased from 4 to 10 branches in 2012-13.
GROWTH OF BRANCHES IN URBAN AREA
The details of growth of branches in urban areas in Tirunelveli District are shown in Table.
Table 5
Growth of branches in urban area
BANKS 2008-09 2009-10 2010-11 2011-12 2012-13
Canara Bank 10 10 9 9 10
IDBI 1 1 1 1 1
UCO Bank 1 1 1 1 1
Total 51 51 53 57 65
Table 6.5 shows the growth of branches in urban areas in Tirunelveli district. The table
reveals that the branches opened by Indian Overseas bank has increased from 10 in 2008-09 to 12
branches in 2012-13, the branches opened by Indian bank has increased from 8 to 10 branches, the
64
branches opened by State Bank of India has increased from 7 to 8 branches and the branches
opened by Canara bank has declined one branch in 2010-11.
Table 6
Financial Assistance from Govt.
Crosstab
Count
Financial Assistance from Govt. Total
Low High
Type of Public 1 1 2 6 8 18
bank
Private 0 1 2 1 2 6
Total 1 2 4 7 10 24
From the above table it is found that out of 24 banker respondents taken for the study, 18 are from
public sector and 6 are from private sector banks. Of the 18 in public sector banks it is found that 8
of them have very high satisfaction over the financial assistance and 6 of them have high
satisfaction over the financial assistance from the government and other factors have less score.
In case of private sector banks it is found that out of 6 bank branches it is found that 2 of the banks
have very high opinion on the financial assistance of the government, 2 of them have neutral
opinion and the other opinion have less score.
Collectively it is found that the banks have very high and high degree of response over the support
of the government through financial assistance to promote financial inclusion concept among the
beneficiary customers.
Table 7
Receiving money from others
Crosstab
Count
Receiving money from others Total
Low High
Type of Public 1 3 4 6 4 18
bank
Private 0 0 1 2 3 6
Total 1 3 5 8 7 24
65
From the above table it is found that out of 18 respondents from the public sector banks 6 of
them feel that they have high support in this regard, 4 of them have very high support and neutral
respectively, 3 of them feel that it is low and the remaining one state that it is very low. In general;
it is found that more than 50% of the respondents state they have high and very high support from
other agencies to implement the programme very well.
With regard to the private sector banks of the total 6 respondents the opinion is very high and high
for 3 and 2 of the banker respondents respectively and the remaining one has a neutral opinion.
Collectively it is found that 8 (33.33%) of the bankers have high opinion relating to the financial
support, 7 of them have very high opinion, 5 have neutral opinion, 3 of them have low opinion and
the remaining 1 has very low opinion on this. It is found in general that majority of the respondents
have high and very high opinion relating to this support to implement the programme well
SUGGESTIONS
I. All the banks should provide services and create awareness about financial inclusion
to urban and semi urban illiterate people.
II. Each banker should generate knowledge about advantages of financial inclusion.
III. Some benefits should be provided for new account holders bankers should assist one
person to help the new account holders.
CONCLUSION
The present study has focused on the financial inclusion service offered by banks in semi
urban and rural areas in Tirunelveli District. According to the research, many people have their
account for the need of savings and to get loans. But some of the unorganized sector workers are
not involved in financial inclusion; Therefore the bankers should help the public and create
awareness about financial inclusion. “Everyone must have bank account”. This concept must be
floated keeping in mind.
1. PLAN. (2001). International mid-term evaluation of Nirdhan: PLAN microfinance program in

Nepal. Kathmandu: PLAN International.
2. Rajesekhar, D. (2005). Micro-finance and rural non-farm sector: Some NGO experiences. In
Rohini, Nayyar, & S. Alak N, Rural transformation in India. The role of non-farm sector. New
Delhi: Institute of Human Development.
66
3. Sen, A. (1990). Gender and co-operative conflict. In I. Thinker, Presisten inequalities. New
Delhi: Oxford University Press.
4. Speer, P. (2000). Intrapersoal and interactional empowerment: Implications for theory. Journal
of Community Psychology, 28(1).
67
A STUDY ON ROLE OF BANKS IN FINANCIAL INCLUSION WITH SPECIAL
REFERENCE TO TIRUNELVELI DISTRICT
*
A. Saleth Mary Vetriselvi
INTRODUCTION
Financial inclusion is the availability of banking services at an affordable cost to the
disadvantaged and low income groups. In India, the basic concept of financial inclusion is
exhibited in a saving or current account at any bank. In reality, it includes loans, insurance services
and much more, for all members of an economy. An inclusive financial system has several merits.
It facilitates efficient allocation of productive resources and thus can potentially reduce the cost of
capital. In addition, access to appropriate financial services can significantly improve the day to
day management of finances. Thus the financial inclusion is the new mantra of the union
government to include the excluded in the financial services for their wellbeing. A vast majority of
the population lives in rural areas and they have no access to any facilities that ensures futuristic
view not only of their life but also the future generations. Financial inclusion is the biggest
problem in front of the financial system today in rural India and infrastructural bottlenecks are
worsening it even further with each passing day. Hence the researcher intents to conduct a study of
the extent to which the people having different demographic profile residing in a rural area are
conversant with banking habits and the study is titled as “a study on role of banks in financial
inclusion with special reference to Tirunelveli district”.
STATEMENT OF THE PROBLEM

According to the RBI guidelines, banks in India should implement financial inclusion policy to
address the economic problems of vulnerable groups, by providing adequate financial services and
mobilizing their small savings. Financial access/inclusion is considered crucial for
individuals/households to manage their incomes, to exploit opportunities and thereby, improving their
economic positions. Given the fact that most of the banking parameters show dismal condition of
Tirunelveli District, it is important to examine the extent and nature of financial inclusion/exclusion in
the Tirunelveli district. However, as in the recent times the focus of policy makers is to use the
intermediaries for promoting financial inclusion, especially in rural areas, the question whether various
new forms of financial service providers or institutions have helped in promoting/enhancing financial
inclusion also becomes pertinent. While a few studies on some of the
*
Assistant Professor of Commerce, St. Xavier’s College (Autonomous) Palayamkottai
Xaverian Journal of Marketing, July - December 2015 Volume: 8 Number: 8 ISSN 2278- 6562
71
aspects of the financial inclusion have been done recently, no concrete study on the multiple
dimensions of financial inclusion/exclusion in the district in general and in the rural areas in
particular is available. The proposed study is induced by the necessity to fill-in this gap to some
extent. Based on the analysis of rural household survey, in combination with an evaluation of the
role of financial institutions, the study examines different forms of financial service providers, both
formal and informal. Moreover, the proposed study has important policy implications as well. It
has made some recommendations for policy advisors and financial service providers on how to
scale-up access to finance for Tirunelveli district rural poor in a commercially sustainable manner.
OBJECTIVES OF THE STUDY
1. To study the socio, economic and cultural background of members targeted by banks for
financial inclusion.
2. To identify the opinion of the members in becoming part of financial inclusion through
banks and SHGs.
3. To evaluate the role of public and private sector banks in ensuring financial product among
the members.
4. To study the role, responsibility and opinion of bankers in introducing the concept of
financial inclusion and its implications.
5. To identify the pitfalls and offer suggestions to various stakeholders in strengthening the
implementation of financial inclusion effectively.
SCOPE OF THE STUDY
Financial inclusion has become a concern in India as majority of the population live in rural
areas and are dependent on agriculture and other related activities. Due to barriers like low income,
being located in remote areas and illiteracy the rural poor do not enjoy the benefit of formal
finance. The present study aims at analyzing the role of banks in financial inclusion with special
reference to Tirunelveli district. The study analyzes the role of the government machineries and
other private institutions in implementing the financial inclusion aspect in rural areas. This study is
to provide a better understanding of Financial Inclusion and identify the contribution made by the
programme in the overall wellbeing of the beneficiaries.
METHODOLOGY
1. Data collection
The present study has been based on both primary and secondary sources of data. The
researcher has collected the secondary data from the Reserve Bank of India (RBI), State Level
72
Bankers’ Committee (SLBC), NABARD, All India Debt and Investment Survey (AIIDS), the
various rounds of NSSO Surveys and also from some of the published sources of Government of
India like the Planning Commission, the Ministry of Finance, and various independent studies and
reports. The secondary source of data has provided a broader picture of the spatial and temporal
variations in the financial inclusion. It also gives some indication on the success and failure of
various initiatives undertaken to promote financial inclusion. In short, analysis of these data
provided a broad picture of the status and extent of financial inclusion in Tirunelveli district. To
capture these dimensions, a field survey and a case study have been conducted to collect primary
data with the help of two parameters that covers the interview schedule to collect data from the
beneficiaries / members and a questionnaire circulated to the bank officials to extract their opinion
on financial inclusion.
2. Sampling method
Stage I there is 186 bank branches in the study area which includes both private and public
sector banks. A total of 18 banks branches from public sector and 6 bank branches from the private
sector were selected as samples. The selection was based on proportionate sampling method and
13% of the total 186 banks that comes to 24.
Place Rural Sub urban Urban Total
Total bank 53 branches 82 branches 51 branches 186 branches
branches
Total samples 53*13/100=7 82*13/100=10 51*13/100=7 24 branches
Public sector 6 branches 6 branches 6 branches 18 branches
Private sector 1 branch 4 branches 1 branch 06 branches
Stage II in Tirunelveli there is 23,743 SHGs operating with the help of NGOs and of these
7500 groups have direct contact with Banks that strive towards financial inclusion. Of these 5% of
the sample members were selected for the study which comes to 375 members and after data
elimination 360 samples were considered for the study. The member respondents were selected
based on simple random sampling method.
TOOLS FOR ANALYSIS:

The collected data were analyzed properly with the help of proper tools for the effectiveness
of this study. The tools employed are percentage analysis, ANOVA, Chi-square test,’t’ test for
independent sample and factor analysis.
73
HYPOTHESES
1. Hypothesis: There is no significant relationship between the type of banks and the age group
of the respondents.
2. Hypothesis: There is no significant relationship between the type of banks and the marital
status of the respondents.
3. Hypothesis: There is no significant relationship between the type of banks and the religion of
the respondents.
4. Hypothesis: There is no significant relationship between the type of banks and the caste
category of the respondents.
5. Hypothesis: There is no significant relationship between the type of banks and the area of the
respondents
6. Hypothesis: There is no significant association between the type of banks and the various
types of insurance coverage.
7. Hypothesis: There is no significant association between the availability of informal finance
and the influence of such finance.
8. Hypothesis: There is no significant relationship between the level of awareness and various
financial products and services offered by the banks.
9. Hypothesis: There is no significant relationship with the type of members and the
discouraging factors to associate with the bank.
10. Hypothesis: There is no significant relationship between the type of customers and the
opinion relating to the difficulties in connection with taking loans and their later experiences.
LIMITATIONS OF THE STUDY

1. The study suffers lack of knowledge on the part of beneficiaries about financial inclusion
and its implications.
2. The major limitation of the research was the lack of co–operation on the part of the bank
personnel. Repeated requests and visits were needed to convince the bank managers on the
importance of the study and to collect their feedback.
3. Lack of knowledge and orientation about Financial Inclusion on the part of the bank
personnel was another limitation associated with the study.
74
FINDINGS
1. More number of women populations are concentrated in the concept of financial inclusion.
2. Majority of the members are in the age between 30 and 50 years
3. Majority of the members belong to backward community.
4. A large majority of the members are daily workers and agricultural labourers.
5. Rural focus is more in case of public sector banks than that of the private sector banks.
6. Large majority of the customers / members are covered by savings bank and recurring
deposit account.
7. Majority of the members take loan for family needs and personal purposes.
8. Majority are members of SHGs for more than 10 years.
9. The municipal staff members create knowledge among the members on SHGs and other
related activities.
10. Majority of the members feel that the interest rate is moderate and high.
11. Majority of the members pay the loan in monthly installments.
12. The inadequate income and emergency requirements make the members to be defaulters in
payment.
13. The concept of financial inclusion aims at rural development, there is more representation
from rural people.
14. There is no much concentration by the banks on zero balance accounts which is the
violation of government directives.
15. The members have awareness about ATMs, Debit card and insurance facilities.
16. To some extent the members are dealt severely for the sake of business and profit by the
banks and banking system.
17. Public sector banks have very high degree of response towards implementing the concept of
financial inclusion.
18. There is high opinion from the bankers relating to deposits promoted from the members of
BPL annexed to SHGs & MFIs.
19. The government support to implement the programme has received high and very high
opinion from the bank staff.
20. Majority of the bank staff state that they have high and very high opinion relating to the
purpose for which the loans are sanctioned. It has really done some economic benefit to the
members.
75
21. In majority cases the bankers state that the economically backward people are supported
well by their banks.
22. In majority cases the demand for security has some implication over the functioning of the
system of financial inclusion.
23. It is found that the observed value of chi square is 49.999, the degree of freedom is 2 and
the level of significance is 0.00 which is less that 0.05 and hence the null hypothesis is
rejected. There is a significant relationship between the type of bank and the age group of
the respondents.
the level of significance is 0.991 which is higher than that of 0.05 and hence the null
hypothesis is accepted. There is no significant relationship between the type of bank and the
marital status of the respondents.
the level of significance is 0.000 which is less than that of 0.05 and hence the null
hypothesis is rejected. There is a significant relationship between the type of bank and the
religion of the respondents.
26. It is found that the observed value of chi square is 1.844, the degree of freedom is 2 and the
level of significance is 0.398 which is more than that of 0.05 and hence the null hypothesis
is accepted. There is a no significant relationship between the type of bank and the caste
category of the respondents.
27. It is found that the observed value of chi square is .865, the degree of freedom is 1 and the
level of significance is 0.492 which is more than that of 0.05 and hence the null hypothesis
is accepted. There is a no significant relationship between the type of bank and the area of
the respondents.
28. It is found that the calculated value is 108.970, the degree of freedom is 8 and the level of
significance is .0000 which is less than 0.05 and hence the null hypothesis is accepted.
There is no significant association between the type of banks and the various types of
insurance coverage.
29. The outcome of the KMO and Bartlett’s test reveals that the P value is 1433.372, degree
of freedom is 21 and the level of significance is 0.000 which is less than 0.05 and hence
the there is a significant relationship between the availability of informal finance and the
influence of such finance.
76
30. The outcome of the KMO and Bartlett’s test reveals that P value is 2841, degree of freedom
is 36 and the level of significance is 0.000 which is less than 0.05 and hence the there is a
significant relationship between the level of awareness and various financial products and
services extended by various sectors of banks.
31. The outcome of the KMO and Bartlett’s test reveals that P value is3547, degree of freedom
is 36 and the level of significance is 0.000 which is less than 0.05 and hence there is a
significant relationship between the type of members and the affective factors to associate
with the bank.
32. It is found that the factors relating to the difficulties in connection with taking loans and
their later experiences. The primary factor is observed to the inconvenient number of
installments and the period of loan repayment. The participants are not a regular income
group and hence the zero balance accounts even though it is being floated by the banking
rules and by government as well.
SUGGESTIONS
Based on the above findings, the following suggestions are made to all the stake holders
which are to be addressed individually for the effective application of the programme and
enhancing further improvement in the living standard of the members.
TO THE MEMBERS
1. Members should voluntarily come forward to utilize the facilities available and to enhance
the state of empowerment on all spheres of development.
2. There should be interest among the members to regularly participate in the activities and
equip them in enhancing skills and talents to get identity in the society.
3. Members should plan their lives to have great control over their circumstances and free
them from the shackles imposed on them by customs, beliefs and practices.
4. There should be more saving habit than borrowing habit and Borrowing should be possible
to members based on necessity.
5. Financial benefit should not be the major focus of the members and SHGs, beyond the
financial benefit the members and other agents must aim at empowerment in all spheres.
TO THE NGOs / MFIs
1. There should be 100 per cent membership in all the villages which may provide a strong
empowerment state among the women flock.
77
2. There should be rotation based leadership to encourage and develop the talents and skills of
all the group members.
3. Women are to be considered as participants in the welfare programme than beneficiaries. It
important to help women to reflect on their achievements and in the lights of that must be
oriented towards further achievements.
4. New models and methodologies should be introduced now and then to attract women to
participate in the efforts of financial inclusion and micro finance activities. There should be
more need based training regularly to develop the talents individually and in groups.
5. NGOs should be observes and not dictators more particularly on financial matters. It is
suggested that suitable administrative training to all the members of the SHGs should be
given or at least to the animators and representatives of the groups and the same may be
extended to the other members.
TO THE GOVERNMENT
1. A financial literacy and credit counseling centre may be opened in every district with
suitable financial experts, bank officials and other agencies.
2. The state Government may consider giving preference to uncovered areas for promoting
the SHGs which is a means for taking the concept of financial inclusion and micro
finance to every segment of the people.
3. The training was given only on the conventional or traditional business activities. It is
suggested that training on innovative economic activities by using the resources in and
around the district may be given to the members of the SHGs.
TO THE BANKS
1. It is suggested that the officials of bank should visit the SHGs and grade them based on
their quality and performance.
2. The grading system format is already approved by the NABARD and if needed, banks
can outsource the task of grading the SHGs to third party to get better feedback.
3. The loan applications of the SHGs should not be delayed beyond 15 days and the banks
can fix a day for transactions of the SHGs.
78
4. The formalities while opening the SHG accounts in banks can fix a day for transactions of
the SHGs. The formalities while opening the SHG accounts in banks and while advancing
loan to them should be simplified.
5. There should be uniform format for account opening and loan application across banks.
6. It is also suggested that necessary instructions may be given to the authorities and the
bank officials to avoid the delay in sanctioning the loan and to respond to the queries of
the SHG members.
7. Loan amount is one of the basic components to start an activity and also women can be
financially sound when loan amount is given sufficiently. Loan amount should be
increased to the extent that they can take up an income generating activity.
8. Same and balanced rules should be given to both private and public sector banks keeping
the focus of financial inclusion and social development.
9. Interest should be kept less and meager to help members to enhance financial sustainability.
CONCLUSION
The basic idea behind financial inclusion is to provide financial services to low income
households at an affordable cost not only for financial sustainability but also for the series of
virtuous spirals of economic empowerment. Banks through FIs have undoubtedly begun to make a
significant contribution in poverty alleviation and empowerment of poor, especially women in
rural areas of our country. Investing in the capabilities of poor and empowering them to achieve
their choices and opportunities is the definite way to contribute to the economic growth and the
overall development of the family, village, state and nation. The grater percentage of women is
influences positively by being members of SHGs and effectively participating in the inclusive
development process. Women’s participation in the SHGs enabled them to discover their inner
potentials and has given orientation to gain self-confidence, social, economic, political and psycho
local empowerment and capacity building. Let us all vow to reinvent the modern effort of
inclusive growth with new means and ideas to liberate women and bring them all to the state of
empowerment and development.
79
BOOKS & JOURNALS REFERRED:
1. ILO. (1998). Enterprise creation by the unemployed: The role of microfinance. International
Conference of Self-employed. Burlington, 24-26 September.
2. Kabeer, N. (2001). Resource agency achievements: Reflections on the measurements of women’s
empowerment. Theory and Practice, SIDA, 3.
3. Mayoux, L. (1995). From vicious to virtuous circles? Gender and micro-enterprise development.
UN Fourth World Conference on Women UNRISD, (p.3). Genva.
4. Mayoux, L. (1998). Participatory learning for women’s empowerment in microfinance
programmes: Negotiating complexity conflict and change. IDS Bulletin, 39-50.
80
INTERCONTINENTAL JOURNAL OF F
ISSN:2321- 0354 - ONLINE ISSN:2
VOLUME 4, ISSUE 2, FEBRUARY 201
ROLE OF BANKS IN FINANCIAL INCLUSION: A FIELD SURVEY IN TIRUNELVELI

DISTRICT
Dr M. JULIUS CEASAR 1 A.SALETH MARY VETRISELVI 2

1
Professor of Commerce, St. Xavier’s College (Autonomous), Palayamkottai.
2
Assistant Professor of Commerce, St. Xavier’s College (Autonomous), Palayamkottai.
ABSTRACT
In India, the basic concept of financial inclusion is exhibited in a saving or current account opened
and operated at any bank. In reality, it includes loans, insurance services and much more, for all
members of an economy. An inclusive financial system has several merits; it facilitates efficient
allocation of productive resources that can potentially reduce the cost of capital. In addition, access
to appropriate financial services can significantly improve the day to day management of finances.
Thus the financial inclusion is the new mantra of the union government to include the excluded in
the financial services for their well being. A vast majority of the population lives in rural areas and
they have no access to any facilities that ensures futuristic view not only of their life but also the
future generations. Financial inclusion is the biggest problem in front of the financial system as the
in rural India and infrastructural bottlenecks are worsening it even further with each passing day.
Hence the researcher intents to conduct a study on the extent to which the people having different
demographic profile residing in a rural area are conversant with banking habits. This paper deals
with self help groups and financial inclusion of banks and exhibits the financial and social
background of the people.
Key words: financial inclusion, financial exclusion, financial literacy and unorganized sectors.
Introduction
Indian economy is growing strongly which ensures better recovery and asset valuation. Progressive
reforms in banking and low interest rates have increased borrowing activity to achieve their financial
targets. Banking industry is making rapid strides with information technology driven initiatives and has
led to the expansion of products (i.e.) expansion of financial services giving birth to the concept of
financial inclusion. Financial inclusion is the availability of banking services at an affordable cost to the
disadvantaged and low income groups. In India, the basic concept of financial inclusion is exhibited in a
saving or current account at any bank. In reality, it includes loans, insurance services and much more for
all members of an economy. An inclusive financial system has several merits, it facilitates efficient
allocation of productive resources and that can potentially reduce the cost of capital. In addition, access to
appropriate financial services can significantly improve the day to day management of finances. Thus the
financial inclusion is the new mantra of the union government to include the excluded in the financial
services for their well being. A vast majority of the population lives in rural areas and they have no access
to any facilities that ensures futuristic view not only of their life but also the future generations. Financial
inclusion is the biggest problem in front of the financial system as the in rural India and infrastructural
bottlenecks are worsening it even further with each passing day. Hence the researcher intents to conduct a
study on the extent to which the people having different demographic profile residing in a rural area are
conversant with banking habits.
www.icmrr.org 11 icmrrjour
INTERCONTINENTAL JOURNAL OF FI
ISSN:2321- 0354 - ONLINE ISSN:
What is Self Help Group(SHG)
Self Help Group is a homogeneous group of micro entrepreneurs with affinity among themselves,
voluntarily formed to save whatever amount they can conveniently save out of their earnings and
mutually agree to contribute to a common fund of the group from which small loans are given to the
members for meeting their productive and emergent credit needs at such rate of interest, period of loan
and other terms as the group may decide.
Financial inclusion: Financial Inclusion is the process of ensuring access to appropriate financial
products and services needed by vulnerable groups such as weaker sections and low income groups
at an affordable cost in a fair and transparent manner by mainstream Institutional players.
Review of literature
M. Selvakumar and M. Anbalagan1 (2012) in their study titled, “Financial Inclusion is the Road
that India Needs to Travel”, Empirical evidence shows that economic growth follows financial
inclusion. Boosting business opportunities will definitely increase the gross domestic product, which
will be reflected in our national income growth. To sum up, financial inclusion is the road that India
needs to travel toward becoming a global player. Financial access will attract global market players
to our country and that will result in increasing employment and business opportunities.
A. Subbiah and M. Gurusamy 2 (2012) in their study titled, “Financial Inclusion through Rural
Retail Banking”, financial inclusion is not a onetime effort; it is an ongoing process. It is a huge
project which requires concerted and team efforts from all the stake holders-the Government,
financial institutions, the regulators, the private sector and the community at large. It should gather
momentum and grow in geometric proportions and develop into a focused and effective movement.
Bandgar3 (2012) revealed that more than 65 percent of the Indian population is still unbanked‘ and
did not have access to basic banking facilities. The poor and the excluded have successfully
organized themselves in 25 lakh self help group (SHGs). With the phenomenal growth recorded by
microfinance in recent year-62 percent p.a. in terms of number of unique clients and 88 percent p.a.
in terms of portfolio over the past five years and around 27 million borrowers accounts, the SHG
linkage programme had achieved a phenomenal growth over the years but there was still a larger
segment of society that was denied access to financial services.
Kuppan S4 (2012) stated the main reason for financial exclusion is be short of regular or
considerable income. In most of the cases people with low returns do not qualify for a credit. The
proximity of the financial service is an additional fact. The loss is not only the shipping cost but also
the loss of daily pay for a low income person. Most of the excluded consumers are not aware of
bank’s goods, which are helpful for them. Receiving of money for their financial necessities from a
local money-lender is easier than getting loan from the bank.
Objective of the study
1 M. Selvakumar and M. Anbalagan (2012) “Financial Inclusion is the Road that India Needs to Travel”,
Financial Inclusion-Imperatives for Human Development and Sustainable Growth, PG& Research Department
of Commerce, St. Xavier’s College (Autonomous), Palayamkottai, India.Pp.17-23
2 A. Subbiah and M. Gurusamy (2012) “Financial Inclusion through Rural Retail Banking”, Financial
Inclusion-Imperatives for Human Development and Sustainable Growth, PG& Research Department of
Commerce, St. Xavier’s College (Autonomous), Palayamkottai, India.Pp.24-33
3Bandgar, P.K. (2012).Financial Inclusion. The Management Accountant. Vol. 47, No.1.
4 S. KuPpan (2012), “Financial Inclusion”, the Management Accountant, Vol.47, No.1, January 2012; p-12.
To know the level financial inclusion among Self Help Groups in the study
area. To study assess the reasons for financial inclusion and its outcome
To analyze the financial background of Self Help Groups and its utility
To know the loan facilities provided by the banks for Self Help Groups to empower
the members
To identify the pitfalls and offer suggestions.
Profile of the study area
The study area is Vikramasingapuram and Ambasamudram Taluks of Tirunelveli District which are
connected by rural and semi urban area. Different types of people live in this area with various
differentiating factors. Most of the people in the study area are belonging to Hindu and Christian
religion and are involved mostly in agriculture.
Methodology
To collect necessary data the researcher used a well framed questionnaire which consists of 23
questions. Primary data only used for this study. 84 Respondents were selected on simple random
sampling method. Collected data were analyzed with the statistical tools like tabulation, averages
and percentile methods.
Table -1 Age wise classification
Age No. of Respondents Percentage
26-35 28 33.3
36-45 34 40.5
above 45 22 26.2
total 84 100
Source: Primary Data
The above table shows that collection of data on age wise classification of self help group members.
The most of the 40 percent of the women belong to the age group between 36-45.
www.icmrr.org 13 icmrrjournal@gma
Table -2 Classification of respondents on the basis of Nativity

Native place No. of Respondents Percentage
Rural 24 28.6
Semi urban 60 71.4
Total 84 100.0
The above table shows that collection of data on the basis of native place of the Self help groups.
Majority of 60 percent of the respondents belong to semi urban.
Table -3 Educational classification of the respondents

Educational qualification No. of Respondents Percentage
Illiterate 16 19.0
5th std 42 50
6-8 std 16 19.0
SSLC 4 4.8
HSC 4 4.8
College 2 2.4
Total 84 100.0
The above table shows that collection of data on the basis of educational classification. Most of the
respondents 42 percent of the respondents are having 5th standard qualification.
Table – 4 Religion wise classifications

Religion No. of Respondents Percentage
Hindu 74 88.1
Christian 10 11.9
Total 84 100.0
The above table shows that religion wise classification of respondents. Majority of 88 percent of the
respondents are belongs to Hindu.
Table -5 Classification of respondents based on Community

Community No. of Respondents Percentage
BC 18 21.4
SC 66 78.6
total 84 100.0
The above table shows that community wise classification of respondents. Majority of 78 percent of
the respondents are belongs scheduled caste.
Table -6 Classification of based on Marital status

Marital status No of respondents Percentage
Married 68 81.0
Widow 16 19.0
Total 84 100.0
The above table exhibits the marital status of the respondents out of 84, 81 percent of
respondents are married and living with family members.
Table -7 Type of family

Family No. of respondents Percentage
Nuclear 62 73.8
Joint 22 26.2
Total 84 100.0
The above table shows that types of family of respondents. Most of 62 percent of respondents
belong to nuclear family.
Table -8 Number of earning members in the family

No of earners No. of Respondents Percentage
1 10 11.9
2 66 78.6
3 8 9.5
Total 84 100.0
The above table shows that number of earning members in the family. Out of 84 respondents 66
percent of the respondents are belong to 2 members earning in the family.
Table -9 Difficulties in opening a bank account

Opinion No. of Respondents percentage
Yes 74 88.1
No 10 11.9
Total 84 100.0
The above table shows that difficulties in opening the current account, out of 84, 74
members agreed that difficulties in opening a bank account.
Table -10 Person who helped to open a bank account

Persons No. of Respondents Percentage
Friends 34 40.5
Neighbors 38 45.2
SHG Members 12 14.3
Total 84 100.0
The above table shows that persons who helped to open a bank account. Most of the 45
percent of the respondents have got help from their neighbors.
Table – 11 Availed loan through bank by Self Help Groups

opinion No. of Respondents Percentage
Yes 80 95.2
No 4 4.8
Total 84 100.0
The above table shows that persons who availed loan through bank by self help groups. Out of 84
respondents, 95 percent of the respondents have availed loan from banks.
Table -12 Amount of loan

Amount No. of Respondents Percentage
Below 5000 2 2.4
5000-10,000 2 2.4
10000-15000 80 95.2
total 84 100.0
The above table shows that amount of loan availed by the self help group members from
banks. Some Self Help Group members could get 12,000 rupees as a loan therefore, majority of 95
percent of the respondents agreed that they would get loan amount from 10,000 to 15,000 rupees.
Findings
Most of the respondents (040 percent of the women) belong to the age group between 36-
45. Majority of 60 percent of the respondents belong to semi urban area.
Most of the respondents (42 percent) are illiterates.
Majority of 88 percent of the respondents belong to Hindu religion.
Majority of 78 percent of the respondents belong scheduled caste.
Majority of 81 percent of respondents are married.
Most of 62 percent of respondents are belong to nuclear family.
Majority of 66 percent of the respondents belong to 2 members earning in the family.
Majority of 74 percent of the members agreed that there are more difficulties to open a bank
account.
Most of the 45 percent of the respondents are illiterates and seek the help of neighbors.
95 percent of the respondents availed loan from bank in support of the SHGs.
Majority of 95 percent of the respondents agreed that they would get loan amount to the tune of
Rs.10,000 to Rs.15,000.
Suggestions
More services and awareness programmes can be conducted to create awareness and provide
information relating to financial inclusion to illiterate people.
Each banker should generate knowledge about financial inclusion with the help of government
regulations and findout the ways and means to help the needy people.
Financial literacy programmes could be often conducted in villages to reachout the poor for
helping them financially.
Conclusion
The present study has been focused on the financial inclusion service offered by banks in semi urban
and rural areas in Tirunelveli District. According to the research, many people are illiterate, therefore
the bankers should help the public and create awareness about financial inclusion. People are in self
help groups on reason that the banks could make the self help group members to be aware of
financial inclusion. This concept must be floated keeping in mind the socio economic empowerment
of the members that lead to help the family to sustain in their livelihood and to grow in the sphere of
financial viability which take them to a position of growth and development at least to the required
level.

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Questionnaire

A STUDY ON THE ROLE OF BANKS IN THE FINANCIAL INCLUSION IN

Name of the Respondent: …………………………………….

1. Block: 1) Tirunelveli 2) Palayamkottai 3)Tenkasi 4) Nanguneri

3. Age Group: 1) Less than 30 2)30–50 3) 50 and above

4. Marital Status: 1) Married 2)Unmarried 3) Widowed

5. Religion: 1) Hindu 2)Muslim 3)Christian 4) Others

6. Caste: 1) General 2) OBC 3) SC/ST

7. Education: 1) Primary 2)Secondary 3)Higher Secondary 4) Degree

8. Occupation: 1)Agriculture 2) Business 3)Govt. / Private Employee

4) Daily Worker 5) Self Employed 6)House wife

9. Area: 1) Rural 2)Urban

10. Category: 1) Public 2)Private

ii. Financial Awareness:

11. Type of Deposits: 1) Saving Deposits 2) Fixed Deposits

12. Type of Loans: 1) Agriculture Loan 2) Gold Loan 3)Personal Loan

4) Housing Loan 5) Vehicle Loan 6)Education Loan

7) Business Loan 8) Others

Very Low Neutral High Very

13.1 ATM / Debit Card

13.2 \Credit Card

13.3 Cheque Book

13.4 Money Transfer

13.5 Locker Facility

13.6 Mutual Fund

13.7 Mobile Banking

13.8 Internet Banking

13.9 Money Advice & Credit

14. Type of Insurance: 1) Life Insurance 2) Medical Insurance 3) Health Insurance

4) Accident Insurance 5)Vehicle Insurance 6) Property Insurance

Very Low Neutral High Very

Zero Balance Account

Very Low Neutral High Very

15.1 Various Deposit Accounts

15.3 Various Other Financial

iv. Financial Availability:

Very Low Neutral High Very

16.3 Various Other Financial

**SDA – Strongly Disagree DA – Disagree N – Neutral A – Agree

17.1.1 Opening an account with a bank takes lot

17.1.2 Bank employees do not help in opening

17.1.3 Banks are not for the poor

17.1.4 I am not able to keep minimum balance in

17.1.5 Filling of forms for opening account is tedious

17.1.6 I do not have savings habit

17.2.1 I am not able to save due to high cost of

17.2.2 Bank employees are not friendly and co-

17.2.3 I prefer to deposit money with private bankers

17.3.1 There is much delay in sanctioning and

17.3.2 Banks charge heavy interest on loans.

17.3.3 Attitude of the bank staff is indifferent.

17.3.5 Number of installments is not convenient.

17.3.6 Period of loan repayment is shorter.

17.3.7 There is restriction in the use of loan amount.

17.3.8 In case of default in payment, further loan is

17.4.1 I need insurance against loss of life and

17.4.4 Insurance agents compel people to buy

17.4.6 I don’t know how to operate ATM, so I don’t

17.4.11 I use mobile phone but don’t use mobile

18. How much information about the following is available to you?

Very Low Neutral High Very

18.1 Day-to-day cash management.

18.2 Profitable investment avenues.